Sony Hack Causes Delay in Full Earnings Report, Financial Impact "Not Material"

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"While Sony continues to evaluate the impact of the cyberattack on its financial results, it currently believes that such impact is not material," the company says.

Sony Corp. said Friday that the hacking attack on its film studio will cause it to delay its next full quarterly financial report.

It also said that it expects the hack to have no material impact on its financials. "While Sony continues to evaluate the impact of
the cyberattack on its financial results, it currently believes that such impact is not material," the company said.

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The company said it has filed for an extension on usual reporting deadlines with the Financial Services Agency of Japan. Affected is the quarterly report for the fiscal third quarter ending March 31. The company was expected to report results on Feb. 4.

Sony said the hack attack left the company unable to produce a full financial report by a Feb. 16 deadline, leading it to ask financial regulators for permission to file by March 31.

Sony, led by CEO Kazuo Hirai, said it would still issue a release and hold a conference call on Feb. 4 to provide "updated forecasts of Sony's consolidated financial results for the third quarter, to the extent reasonably possible."

"In November 2014, Sony Pictures Entertainment Inc., a consolidated subsidiary of Sony that is reported as the Pictures business segment, identified a cyberattack on SPE’s network and IT infrastructure," the company also said in a statement. "As a result of the cyberattack, which has been now recognized as a highly sophisticated and damaging cyberattack, a serious disruption of SPE’s network systems occurred, including the destruction of network hardware and the compromise of a large amount of data on these systems. In response to this cyberattack, SPE shut down its entire network. Since that time, SPE has worked aggressively to restore these systems."

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Added Sony: "However, most of SPE’s financial and accounting applications and many other critical information technology
applications will not be functional until early February 2015 due to the amount of destruction and disruption that occurred, and the care necessary to avoid further damage by prematurely restarting functions."

Once the systems are up and running again, the studio unit will enter and verify data for the two months that it was off-line, the company said.

Sony didn't identified the attackers in the statement beyond calling them a "third party."

Email: Georg.Szalai@THR.com
Twitter: @georgszalai

 

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